Trading on the financial markets takes experience, time and an understanding of what factors impact market movements. While some people have mastered the art of analyzing these movements and knowing when to enter or exit trades profitably, for others, this remains a mystery.
To assist in finding trading opportunities in the markets, trading software has taken center stage. Today, software platforms are the main facilitators of market analysis and day trading in financial products, such as currencies, cryptocurrencies and stocks. The many online brokerage firms available, provide their clients with access to trading software, which they use to easily manage their accounts and place the trades they want in the financial markets.
Traders are also free to purchase third-party trading platforms or additional software that enhances their trading experience or supplements the broker-supplied platforms. This type of software might be used to pinpoint potentially profitable trading opportunities in the markets based on specific parameters set by the traders, or even to engage in automated trading that will open or close a trade automatically in the trader’s account once certain markets conditions are met.
No matter what your trading preferences are, powerful and intuitive trading software will enable you to trade a wide range of assets profitably in the financial markets.
Table of Contents
What Is Trading Software?
Understanding Trading Software
Essentially, automated trading software is a computer program that runs online autonomously and interacts with a variety of financial exchanges directly to place buy or sell orders. The software generally connects using Application Programming Interfaces (APIs) to retrieve and analyze relevant market information and to act on its interpretation of the data through specific algorithms.
- Trading software will usually analyze various market actions including trading volumes, numbers of orders, pricing of assets and timing, but can often also be pre-programmed to follow the trader’s preferences and risk-level.
- Trading software continues to grow in popularity among traders worldwide since it has the ability to find trading opportunities in the markets 24 hours a day, 7 days a week.
- Trading software never sleeps.
- In addition, trading software is able to do all the analysis for the trader, while still enabling the trader to stay in full control of their trading activities, at all times.
Additionally, a correctly programmed trading software platform allows for trades to be executed quickly and more efficiently than would be possible if traded manually.
Also known as trading robots or “bots,”, trading software is able to make trading decisions based on their algorithms and the monitoring of movements in the stock, cryptocurrency or forex markets. The software is also backed up by a set of predetermined rules or parameters, which have been entered by the trader.
- This ensures that if the software has been automated, it will only enter or exit trades that match the preferences as set out by the trader.
- Trading software is beneficial to both new and advanced traders and it enables new traders to learn about financial trading, while watching the software in action.
More experienced traders can use trading software to find and test potentially lucrative trading opportunities based on their trading parameters.
Accessing Trading Software
Despite being a popular choice in the financial markets and among large institutional investors, trading software used to be inaccessible to the average individual investor as they used to cost a lot of money.
Today, however, traders are able to access a wide range of trading software, each with their own unique features, pros and cons. In addition, some of the trading software is available free of charge.
How Trading Software Works
Trading software is designed to react to market movements. It gathers the data it requires in real time and can execute trades on a trader’s behalf based on analytics built into the system. Most trading software applications use the exponential moving average (EMA) as their starting point when carrying out analysis of the market.
Because EMAs track the market over a set period of time, the bots can be set up to react to the price action of an asset– for instance, enter or exit a trade when the price moves beyond a particular threshold.
Programming Trading Software
Some trading software, such as the Bitcoin Code, are programmable, thus allowing you to establish parameters that correspond to your personal risk appetite and trading preferences. This feature is very important when trading most assets, such as cryptocurrencies, since markets can be exceptionally volatile.
By being able to program the software to only enter or exit trades based on specific parameters, you are able to ensure that you never miss a trading opportunity and that you are only making trades that meet your trading style. You are also able to limit your trading activities based on your available trading capital.
Automated Trading Software
One of the biggest benefits of effective trading software is that they can be automated. That is, you can set the trading software to enter or exit trades on your behalf without having to even interact with the software. Once you have set your trading rules, the software will act accordingly.
The one benefit of this is that the trading software works even while you are asleep and it is not influenced by any emotions which could negatively impact one’s trading activities. Another benefit is the speed at which trading software works.
If you are a trader, then you fully understand the importance of acting quickly in the financial markets. Any minute wasted could be a wasted profitable trade. Trading software reacts to market conditions in real-time.
Does Trading Software Work?
The answer to this question is that trading software does work but not all trading bots have been created equally. There are many software systems available in the market that offer perfect results but this is really not possible in the financial markets.
While the market movements can be accurately analyzed, events can happen in an instance which can move the markets in an unexpected direction.
Also, with some trading software, the default settings may not necessarily be a fit for everybody and may require tweaking. Based on this, it is vital to select trading software that can be configured based on your trading needs and one that also allows for both automated and manual trading. This will ensure flexibility and will give you full control of your trading activities.
Which is the Best Trading Software?
As mentioned above, the best trading software is one that minimizes the effect of emotion on trading, while ensuring that it sticks to the trading strategy you choose. With automated trading software, because the trading software will automatically execute a trade order as soon as your set conditions are met, you do not have the chance to question a trade or hesitate on its execution. In addition, good trading software will prevent you from overtrading.
- That is, buying and selling at every opportunity regardless of the market condition.
- Another feature of the best trading software platforms is that they give you the ability to carry out back-testing.
- Back-testing involves the application of your trading rules to the historical market data to establish whether a strategy is viable.
- The automated trading system is designed to work on absolute trading rules that are not open to different interpretations.
- This means that the platform should execute your trades precisely according to your instructions without any guesswork.
- The best trading software will help you to preserve your trading discipline.
- Because the rules of the trade are set to be automatically executed, discipline is maintained even in volatile markets.
- Often, emotional factors, such as the fear of making losses or a desire to make more profit from an unviable trade, result in the loss of trading discipline.
- A good trading software platform follows your rules precisely, eliminating any overly cautious or extremely risky behavior that is common in manual trading. There is also no room for human error – for instance, the software will never enter a purchase order of 100 lots instead of a sell order for 1,000 units.
- Back-testing is an important part of any risk management strategy when trading, since it lets you test your rules on past data before you commit your money to live trading.
Not only does backtesting let you fine-tune your trading ideas and verify that they are viable, but it also helps you to calculate your system’s expectancy, which is the average amount of money that you should expect to gain (or lose) for each unit of risk. Some trading software has already done the backtesting for you and will provide you with a percentage of their system’s accuracy.
- The higher the success rate, the higher your profits are likely to be.
- In addition, some software systems come with its own performance characteristics, fee structures and a host of other features which could have an impact on profitability.
- All of these are factors that a trader should look into before opting for a particular piece of trading software.
- Before making a decision on your trading software of choice, investors and traders need to carefully consider the features they require.
Traders who need to get in on the action throughout the day, may prefer a completely different type of trading software to those who simply want to be able to place trades in the evenings. Also, what types of assets do you want to trade? Only forex? Only stocks? Do you want to trade Bitcoins? Once you understand what your trading requirements are, you can then select the appropriate trading software.
Trading Software for Stocks
The first auto trading software online appeared as a response to the need by individual investors to access the stock market easily, without having to learn the ins and outs of the share market. Generally, automated trading software is an application which is linked seamlessly to a direct access brokerage.
- Any special rules that should be followed in trading will have to be written in the proprietary language of the platform.
- For example, the world’s most popular online trading platforms, the ubiquitous MetaTrader 4 and MetaTrader 5, are built on the MQL software programming language, while NinjaTrader is powered by NinjaScript.
- The pioneering stock trading software applications were largely built around trading “wizards,” which are options which let traders select choices from a collection of popular indicators in order to set up the rules for their trades on the platform.
- For instance, a trader could decide to have the software enter a long trade when the 50-day moving average for a stock moved above the 200-day moving average on the instrument’s chart.
Traders also have the option to enter the kind of order they would like (for example, market order or limit order) and to determine the exact asset price at which the trade should be triggered. Stock trading software has default settings for this, but many traders opt to use their own strategies or utilize custom indicators.
Although using custom settings requires considerably more effort compared to using the wizard, platforms like Stock Master allow traders to choose their parameters of trading and to remain in complete control, giving them more rewarding results. In addition, this powerful and effective stock trading software is free to use.
- Stock Master was developed by a veteran stock market player, software developer and entrepreneur, David Campbell.
- He was able to discover an effective way to use advanced market analysis to pinpoint trades with a high profitability potential.
- Once you have set up your trading rules in Stock Master, the platform monitors the stock markets continuously to identify potentially profitable buy or sell opportunities.
- You also have the choice of selecting a top broker from the range of trusted broker partners linked to Stock Master and if you set this software to automated, it will then place trades on your behalf when the necessary conditions are met.
Once the stock trading software enters a trade that is based on the rules you have specified, Stock Master automatically and transparently handles details like stop loss, trailing stops or profit targets, as per your selection, in a fraction of a second.
- In the fast-paced world of stock trading, the rapid order entry that is possible using the automated trading software could spell the difference between a huge profit and a disastrous loss.
- As with any trading system available online, the stock trading software that you choose will boil down to your specific needs.
- You need to identify what matters most to you and act on what you consider to be your priorities – functionality, data analysis, price or any other detail.
Stock Master covers a wide range of trading styles plus it analyses the markets with laser accuracy, ensuring that top trading opportunities are always found.
Access the Best Forex Trading Software
There are many features that traders look at when determining the best forex trading software for them to use. To be truly great, a forex platform should be robust, but at the same time user-friendly. This is because the software is indispensable in performing the tasks below:
Trading software helps to streamline the analysis of market price action. This is as a result of the included technical analysis tools, charting capabilities and market indicators. Market analysis is a core component of trading profitably – if you don’t know why the markets are moving and where the are expected to move in the future, you will not succeed.
The trading software offers several ways for a trader to enter or exit the market. The can be manually, semi-automatically and automatically.
Strategy development techniques are supported by system features, such as optimization and back testing. This is an effective way for any trader to test the success of their skills and strategies.
Forex trading is undoubtedly a highly competitive and very fast-paced arena. If a trader is to keep themselves from falling behind the curve, they need to identify and use trading software platforms that feature a combination of innovation, flexibility and bleeding-edge technology. Algo Signals are among the applications that have gained popularity for this reason.
The Best Bitcoin Trading Software
The popularity of the cryptocurrency Bitcoin has also led to increased interest in automated Bitcoin trading software. This is because these applications can be set up with specific trade parameters and they will find favorable market conditions and execute the trades without any need for human intervention.
- What’s more, some of these Bitcoin trading bots are actually consistently more successful in their trades than human traders.
- Unlike the case of the stock market, cryptocurrency markets never close and they never sleep.
- This is often a highly stressful situation for experienced traders as well as the millions of casual investors who have put their money into the industry hoping to make big returns.
If you are familiar with cryptocurrency trading, then you will also be familiar with either the joy or sinking feeling you get when you wake up in the morning to find a pleasant or nasty surprise when you check your crypto investment portfolio to see a large gain or huge losses. This is where automated Bitcoin trading systems come into play.
The explosion in popularity of cryptocurrency trading, especially trading in Bitcoin, has led to a massive increase in the number of automated trading systems designed specifically for the crypto space, including Bitcoin Code, Bitcoin Trader and Bitcoin Loophole. These leading software programs have enabled thousands of traders worldwide to profit from the cryptocurrency market.
The leading Bitcoin trading software include:
This software platform was developed on the basis of the ideas of Steve McKay, a specialist in algorithmic systems for the cryptocurrency market. The software takes a minimalist approach to the analysis of market data, by narrowing down to a single, very specific aspect of the market in order to pinpoint potentially profitable trading opportunities. It is said that the system is capable of isolating as many as 97 opportunities per day. The results of each trade are then openly displayed so that traders can monitor its success rate and also verify profits or losses.
This is one of the newest systems available on the market today. It is an innovative system which is built on the basis of an almost foolproof collection of algorithms designed for passive investors in the cryptocurrency segment. Bitcoin Trader’s programming is some of the most advanced in the world andit focuses largely on how quickly trades are executed. In fact, the software’s automated trades are executed about 0.01 seconds quicker than the movement of the market, a feature the developers call “time leap.”
Everybody loves it when they discover a glitch in the matrix. This is exactly the kind of thing Bitcoin Loophole was designed for. Built to be deadly accurate yet user friendly, it is an excellent choice for both new traders and seasoned pros. Depending on a trader’s preferences, they may opt for one of these methods when setting up the trade parameters: Classic, Martingale or Fibonacci. Additional trading parameters that are open to customization include the number of trades to be handled, the trade size and whether a low, medium or high-risk strategy should be used.
Traders who want to get in on the Bitcoin and cryptocurrency action, may find that their needs are served well by elite, automated systems like Bitcoin Code, Bitcoin Trader or Bitcoin Loophole. If you have never traded cryptocurrencies before, using a tried and tested trading software as mentioned above, is definitely the first step you should take if you want to step into the trading arena with confidence.
Is it Worth Using Trading Software?
The short answer is, YES! However, as with most things in this world, it’s about choosing the right one. With the popularity of automated trading software in the forex, stocks and cryptocurrency markets, there are many options available online.
As you carry out your search for the best trading software, you will undoubtedly encounter pages promoting platforms that promise you unrealistic returns and features, so its important to be aware that while automated software can produce exceptional results, no software can guarantee you 100% success.
The best trading software, such as Algo-Signals and Bitcoin Trader are reputable systems that not only offer you realistic, but excellent returns from trading and do not charge you any fees or commissions to use it.
Plus, and most importantly all the money you deposit with a broker through the platform is available to you to trade, profit from and withdraw whenever you please. As a cryptocurrency, forex or stock trader, it is important that you are able to identify genuine quality software and be prepared to test them out.
The Final Word
Using online trading platforms to trade is something that takes time to master. This is because it requires you to develop a strategy or learn one, then practice for several months until you consistently earn profits. Most platforms also require you to consider your personal circumstances – you will have to consider if you have enough capital and the time to trade on a live account.
- Forex trading software, particularly trading software for Bitcoin trading, are a great help to traders since they ensure that they are always exposed to the financial markets, even when they are not physically at their trading stations.
- However, it is important to remember that these systems are meant to augment a trader’s analytical skills, not to act as a substitute.
Despite this, Stock Master, Algo Signals and Bitcoin Trader, along with other similar trading applications, make forex, stock and Bitcoin trading stress-free and more profitable by removing the emotions, which cause overconfidence or doubt, while strictly dealing with real-time market data.
Why not get into the trading action now?